Essential patent rights in 3G wireless will win or lose companies millions.

0 Comments | M2 Presswire, September, 2002

M2 PRESSWIRE-11 September 2002-PA CONSULTING GROUP: Essential patent rights in 3G wireless will win or lose companies millions (C)1994-2002 M2 COMMUNICATIONS LTD RDATE:09112002 Modern telecoms standards include a great deal of embedded "Essential" intellectual property. Any product which complies with the standard infringes these Essential patents and the manufacturer needs a license from the patent holder.

In second generation standards like GSM and cdmaOne, the licensing process is complex and expensive for the licensee since licenses are needed from a dozen or more Essential patent holders. Royalty rates payable can reach 20 of the handset's sale price. Conversely, for some licensors, Essential patents have proved to be an excellent source of...